Financial Modelling for a start -up

Project Brief - LakeDale Global Finance

Background
Please undertake a financial modelling exercise over five years using the following variables. Please, modelling should be in Naira.

Financing Company - AA Trust Fund

• Debt funding of $10,000, 000 borrowed from AA trust in the UK at rate of 8% per annum
• Quarterly interest payment of 10% per annum (Pro-rata), will be paid to AA trust.
• The $10,000,000 will be paid back at the end of the fifth year
• Possibility that this will be rolled over
• This will be imported into Nigeria and converted into Naira at an exchange rate of 500 Naira to a pound.


Lake Dale Global (Borrower)
• LakeDale Global will be the borrower from AA trust Fund.
• Lakedale will borrow SMEs in Nigeria at a rate of 22 % per annum
• Intention is to deploy 60% of the borrowed fund in year one
• We need to maintain capital requirement of 100,000, 000 Naira
• Initial cost - 20,000,000 Naira a year
• Staff cost Budgeted at 25, 000, 000 Naira a year
• Office premises – 5,000,000 Naira a year
• Assumption – No default

Ask
• Financial Analysis
• Yearly return on Investment.